On dissolution, what entry is passed if a partner takes over an asset of the firm Valued Rs. 10,000 at Rs. 6,000? Post category:Accountancy Reading time:1 mins read SOLUTION Partner’s Capital A/c Dr. 6,000 To Realisation A/c 6,000 Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostGive one distinction between reconstitution of a firm and dissolution of a firm. Next PostWhen an asset is taken over by a partner, why is his Capital Account debited? You Might Also Like Name any two items that can be disclosed under “Tangible Assets”. September 30, 2022 Pass necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya: (a) There was an old furniture in the firm which had been written off completely in the books. This was sold for Rs. 3,000. (b) Ashish, an old customer whose account for Rs. 1,000 was written off as bad in the previous year, paid 60%, of the amount. (c) Paras agreed to takeover the firm’s goodwill (not recorded in the books of the firm), at a valuation of Rs. 30,000. (d) There was an old typewriter which had been written off completely from the books. It was estimated to realise Rs. 400. It was taken by Priya at an estimated price less 25%. (e) There were 100 shares of Rs. 10 each in Star Limited acquired at a cost of Rs. 2,000 which had been written-off completely from the books. These shares are valued @ Rs. 6 each and divided among the partners in their profit-sharing ratio. July 25, 2022 Adil and Bhavya are partners sharing profits and losses in the ratio of 7: 5. They admit Cris, their manager, into partnership who is to get 1/6th share in the business. Cris brings in Rs. 1,00,000 for his capital and Rs. 36,000 for the 1/6th share of goodwill which he acquires 1/24th from Adil and 1/8th from Bhavya. Profits for the first year of the new partnership was Rs. 2,40,000. Pass necessary Journal entries for Cris’s admission and apportion the profit between the partners. November 3, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Pass necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya: (a) There was an old furniture in the firm which had been written off completely in the books. This was sold for Rs. 3,000. (b) Ashish, an old customer whose account for Rs. 1,000 was written off as bad in the previous year, paid 60%, of the amount. (c) Paras agreed to takeover the firm’s goodwill (not recorded in the books of the firm), at a valuation of Rs. 30,000. (d) There was an old typewriter which had been written off completely from the books. It was estimated to realise Rs. 400. It was taken by Priya at an estimated price less 25%. (e) There were 100 shares of Rs. 10 each in Star Limited acquired at a cost of Rs. 2,000 which had been written-off completely from the books. These shares are valued @ Rs. 6 each and divided among the partners in their profit-sharing ratio. July 25, 2022
Adil and Bhavya are partners sharing profits and losses in the ratio of 7: 5. They admit Cris, their manager, into partnership who is to get 1/6th share in the business. Cris brings in Rs. 1,00,000 for his capital and Rs. 36,000 for the 1/6th share of goodwill which he acquires 1/24th from Adil and 1/8th from Bhavya. Profits for the first year of the new partnership was Rs. 2,40,000. Pass necessary Journal entries for Cris’s admission and apportion the profit between the partners. November 3, 2022